Utilities don't have to expand solar incentive programs – yet

For now, Michigan’s public utilities aren’t required to expand incentive programs to encourage solar power use.

A final report from a solar power work group released this week made no recommendations on expanding the current utility-sponsored solar incentive program for customers, or whether to create a community solar program.

The 225-page report released by the Michigan Public Service Commission does indicate, however, that the state’s two largest utilities — DTE Energy Co. and Consumers Energy Co. — showed an interest in developing subsidy-free customer and community solar programs.

The subsidies that support these programs now are mostly financed by nonparticipating customers, the utilities told the work group.

Environmentalists, manufacturers and solar installers have been asking the state to require the utilities to expand the programs for job creation and public health reasons before they expire in 2015.

In 2009, when Michigan's renewable energy and efficiency legislation (Public Act 295) went into effect, DTE began developing its SolarCurrents program and Consumers had its Experimental Advanced Renewable Program. Both programs provide financial incentives for residential and business customers to build and install photovoltaic systems.

The work group did come up with three programs and community solar options that could be implemented with pilot programs, but the group could not come to an agreement on which one was best. The utilities expressed interest in a company-owned model for any near-term community solar program.

There was also no agreement on whether the current solar programs should be expanded.

The 76-member work group was made up of MPSC staff, employees of the two utilities and members of environmental groups and business organizations.